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Private equity firm acquires manufacturer

October 17, 2018
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A local private equity firm has acquired a Michigan maker of metal stampings for the fastener market.

Grand Rapids-based Auxo Investment Partners said this week it acquired Warren-based Prestige Stamping.

Terms of the deal were not disclosed.

“We were immediately impressed with Prestige and by the tenacity with which the company pursues process improvement, quality and growth,” said Jack Kolodny, managing partner, Auxo Investment Partners. “It’s clear the company’s values are closely aligned with ours, and its success has been driven by the Rink family’s relentless pursuit of excellence and customer service.”

Auxo Managing Partner Jeff Helminski added: “This is exactly the kind of company we had in mind when we formed Auxo two years ago. And we look forward to being an active and additive partner in the continued growth and diversification of an already outstanding company.”

Chris Rink is the CEO of Prestige Stamping and will continue in his leadership role following the acquisition.

“Starting from a stone garage in Detroit where we took our first order more than 50 years ago, our family has worked hard to build a customer- and employee-centric culture with a singular mission to deliver market-leading quality, speed and value to our customers,” Rink said.

“We selected Auxo as a partner because of the values our organizations share. And we think Auxo’s hands-on investment approach will bolster our ability to maintain our vision and ensure a prosperous future for our company and for our long-standing employees.”

Beyond Prestige’s core markets, Kolodny said the company will now target additional sectors: aviation and engine manufacturing; rail; aerospace and missile defense; and heavy truck and other transportation sectors.

The acquisition of Prestige marks Auxo’s fifth acquisition in 13 months and follows the closing in September of the firm’s $50-million inaugural investment fund, Auxo Growth Holdings I, which has powered all its investments.

M&A advisors

Advisors and lenders on the transaction included Generational Equity, Miller Johnson, Barnes & Thornburg, BDO USA, Tree Line Capital Partners, Mercantile Bank, Aon, Krauter & Co. and Advantage Benefits.

Auxo

Founded in 2016 by veteran investors and operators Helminski, Kolodny and Fred Tedori, Auxo Investment Partners is a private equity firm that invests in manufacturing, industrial, distribution and business services companies in North America with an EBITDA cash flow of $1.5-$15 million.

Prestige

Founded in 1967, Prestige Stamping is a maker of high-volume, tight-tolerance washers and similar small metal stampings from its 100,000-square-foot facility in Warren.

The company manufactures more than 1-billion washers and metal stampings annually for more than 200 customers in the following markets: automotive; infrastructure and construction; agriculture; electronics; and home and office products.

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